What's happening
This bill removes prohibitions on manufacturers and wholesalers having an interest in retail alcohol sales and repeals on-site brewery restrictions.
Why it matters
Breaks up the traditional "three-tier" system. by allowing alcohol manufacturers and wholesalers to have a direct financial interest in retail operations, which could reshape how alcohol is distributed and sold in New York, impacting everything from pricing to product availability.
Could foster more collaboration and innovation. between producers and retailers (such as “brewpubs” or “tasting rooms”) by removing strict separation—potentially leading to new business models and more diverse choices for consumers.
May increase competition and reduce barriers to market entry. for small producers, as they could now operate or invest in retail outlets without violating state law, possibly helping local craft breweries, distilleries, and wineries to grow.
Repeals specific on-site brewery restrictions. , which could make it easier for breweries to serve their products directly to customers, enhancing the customer experience and supporting tourism, local jobs, and community economic development.
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Who cares
Headline styles
Allow On-Site Breweries Statewide
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 40
No co-sponsors yet.
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Allow Breweries and Alcohol Integration
In Assembly Committee · Economic Development · Sponsor Sandy Galef
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
S. 5677 A. 7361
2017-2018 Regular Sessions
SENATE - ASSEMBLY
April 25, 2017
IN SENATE -- Introduced by Sen. MURPHY -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
IN ASSEMBLY -- Introduced by M. of A. GALEF -- read once and referred to the Committee on Economic Development
AN ACT to amend the alcoholic beverage control law, in relation to removing prohibitions on manufacturers and wholesalers from having an interest in retail sales and removing the general prohibition of on-site breweries; and repealing certain provisions of such law relating thereto
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 1 of section 101 of the alcoholic beverage control law is REPEALED and paragraphs (b), (c), (d) and (e) are relettered paragraphs (a), (b), (c) and (d).
§ 2. Paragraph (d) of subdivision 1 of section 101 of the alcoholic beverage control law, as added by chapter 557 of the laws of 1964 and as relettered by section one of this act, is amended to read as follows:
(d) The prohibitions and restrictions contained in paragraphs [b, c and d above] (a), (b) and (c) of this subdivision shall not apply to any contractual arrangements between a licensed manufacturer or wholesaler and a licensed retailer where such manufacturer or wholesaler has made a substantial investment, directly or through such retailer, in the construction, capitalization or furnishing of any exhibit, facility or installation in the area leased by the city of New York to New York World's Fair 1964-1965 Corporation, pursuant to chapter four hundred twenty-eight of the laws of nineteen hundred sixty, as amended, and such retailer is conducting his business as a part of such exhibit or installation or is responsible to such corporation for the construction, operation or maintenance of such exhibit, facility or installation. This
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08669-01-7
S. 5677 2 A. 7361
modification to the prohibitions and restrictions contained in this paragraph shall continue until November first, nineteen hundred sixtyfive.
§ 3. Subdivision 13 of section 106 of the alcoholic beverage control law is REPEALED.
§ 4. Subdivisions 18 and 19 of section 64-c of the alcoholic beverage control law are REPEALED.
§ 5. Subdivision 7 of section 103 of the alcoholic beverage control law, as amended by chapter 221 of the laws of 2011, is amended to read as follows:
7. Each manufacturer shall keep and maintain upon the licensed premises, adequate books and records of all transactions involving the manufacture and sale of his or its products, which shall show the ingredients but not the formula or recipe used in the manufacture of such alcoholic beverages together with the quantity of alcoholic beverages manufactured by such manufacturer; the names, addresses, and the license numbers of the purchasers of such alcoholic beverages, together with the quantities involved in such purchases, whether the same shall be sold within or without the state. Each sale shall be recorded separately on a numbered invoice, which shall have printed thereon the number, the name of the licensee, the address of the licensed premises, and the current license number. Such manufacturer shall deliver to the purchaser a true duplicate invoice stating the name and address of the purchaser, the quantity of alcoholic beverages, description by brands and the price of such alcoholic beverages, and a true, accurate and complete statement of the terms and conditions on which such sale is made. Any terms and conditions of a sale not stated on said invoice shall constitute a service within the meaning of paragraph [(c)] (b) of subdivision one of section one hundred one of this article. Such books, records and invoices shall be kept for a period of two years and shall be available for inspection by any authorized representative of the liquor authority. Provided, however, that any books and records required by this chapter to be maintained by a winery, farm winery, special winery, special farm winery or microwinery must be kept either upon the licensed premises or such other location as may be approved by the authority.
§ 6. Subdivision 10 of section 104 of the alcoholic beverage control law, as amended by chapter 162 of the laws of 1969, is amended to read as follows:
10. Each wholesaler shall keep and maintain upon the licensed premises, adequate books and records of all transactions involving the business transacted by such wholesaler, which shall show the amount of alcoholic beverages in gallons, purchased by such wholesaler together with the names, license numbers and places of business of the persons from whom the same was purchased and the amount involved in such purchases, as well as the amount of alcoholic beverages, in gallons, sold by such wholesaler together with the names, addresses, and license numbers of such purchasers whether the same shall be purchased or sold within or without the state. Each sale shall be recorded separately on a numbered invoice, which shall have printed thereon the number, the name of the licensee, the address of the licensed premises, and the current license number. Such wholesaler shall deliver to the purchaser a true duplicate invoice stating the name and address of the purchaser, the quantity of alcoholic beverages, description by brands and the price of such alcoholic beverages, and a true, accurate and complete statement of the terms and conditions on which such sale is made. Any terms and conditions of a sale not stated on said invoice shall constitute a service
S. 5677 3 A. 7361
within the meaning of [section one hundred and one, subdivision one (c) of this chapter] paragraph (b) of subdivision one of section one hundred one of this article. Such books, records and invoices shall be kept for a period of two years and shall be available for inspection by any authorized representative of the liquor authority.
§ 7. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the alcoholic beverage control law, in relation to removing prohibitions on manufacturers and wholesalers from having an interest in retail sales and removing the general prohibition of on-site breweries; and repealing certain provisions of such law relating thereto
Purpose or general idea of bill
The purpose of this legislation is to remove restrictions on on-site breweries and remove prohibitions on manufacturers and wholesalers.
Summary of provisions
Section 1. Paragraph (a) of subdivision 1 of section 101 of the Alcoholic Beverage Control Law is REPEALED paragraphs (b), (c), (d) and (e) are relettered paragraphs (a), (b), (c) and (d).
Section 2. Paragraph (d) of subdivision 1 of section 101 of the Alcoholic Beverage Control Law is amended by removing these exact letters, "b, c, and d above" and replacing it with "(a), (b) and (c) of this subdivision".
Section 3. Subdivision 13 of section 106 of the Alcoholic Beverage Control Law is REPEALED.
Section 4. Subdivisions 18 and 19 of section 64-c of the Alcoholic Beverage Control Law are REPEALED.
Section 5. Subdivision 7 of section 103 of the Alcoholic Beverage Control Law is amended by removing "(c)" and replacing it with "(b)".
Section 6. Removes the language "section one hundred and one, subdivision one (c) of this chapter", and replaces it with "paragraph (b) of subdivision one of section one hundred one of this article."
Section 7. Establishes the effective date.
Difference between original and amended version (if applicable)
This portion is not applicable at this time.
Justification
In 2016, similar legislation was introduced, and become law, which was specific to Peekskill. This legislation was needed to revitalize the area known as the Charles Point Marina. After nearly all the businesses at the marina had left, it was sold in 2014 to Diamond Properties, a business in which two of the partners were operating bowling alley/amusement centers and restaurants throughout Westchester. There was excitement about the rebirth of the marina, however, an obstacle arose when it was learned that the provisions of the ABC Law would restrict the holder of a manufacturing license from opening a restaurant-brewery at another location.
Since the 1930s, when Prohibition was repealed, New York State law has restricted owners of alcohol manufacturer's licenses, wholesale licenses and retail licenses from having an interest in each other. This practice is outdated.
Previously, the Alcoholic Beverage Control Law has been amended to create specific, limited exemptions from the 'tied house' restrictions. This bill will remove the restrictions that currently exist on on-site breweries, manufacturers and wholesalers. By
rectifying this issue on a statewide level we will eliminate the need to carry endless numbers of individual proposals.
Prior legislative history
This is new legislation.
Fiscal implications for state and local governments
There are no known fiscal implications to the State in association with the passage of this legislation.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.